SunPower

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The last name to look at with some interesting insider buying is solar power player SunPower ( SPWR). This is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial and utility-scale power plant customers. It looks like insiders are finding some value here since this stock is down 18% so far in 2012.

SunPower has a market cap of $602 million and an enterprise value of $945 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 10.83. Its estimated growth rate for this year is -144.4%, and for next year it's pegged at 491.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $302.14 million, and its total debt is $693.46 million.

The president just bought 20,013 shares, or about $99,000 worth of stock, at $4.95 per share.

From a technical perspective, SPWR is currently trading below both its 50-day 200-day moving averages, which is bearish. This stock has moved significantly lower in the past fourth months, with shares dropping from a high of $9.54 to a recent low of $4.51 a share. After hitting that low, the stock has started to find some buying interest, and it's now trading within range of a near-term breakout.

If you're bullish on SPWR, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at $5.19 a share with high volume. Look for volume that's close to or above its three-month average volume of 1.1 million shares. If we get that move, then I would look to add to any long positions once SPWR takes out its 50-day at $5.45 and then some more resistance at $5.67 a share with volume. Target a spike back towards its next significant overhead resistance level at $7 or possibly its 200-day moving average of $7.45 a share.

I would simply avoid SPWR or look for short-biased trades if it fails to trigger that breakout, and then drops back below that recent low of $4.51 a share with high-volume. If we get that action, then SPWR would be acting very bearish technically since it will have printed a new 52-week low.

To see more stocks with notable insider buying, including Navistar (NAV), Yelp (YELP) and McDermott International (MDR), check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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